What tax breaks should you be aware of?

awareThere are a significant number of tax breaks for which consumers of all different backgrounds may be eligible in any given year. Of course, the trick to people claiming them is knowing which apply to their unique circumstances, and doing a little brushing up ahead of the date by which documents can first be submitted at the end of January.

Perhaps chief among these is the ability of homeowners to write off the amount they pay to cover mortgages interest costs over the course of the year, according to a report from the Alternative Press. This is also true of home equity loans. However, it's important to note that the value of that financing cannot exceed $1,000,000 for mortgages, and $100,000 for home equity loans.

In addition, those who gave family members gifts of income-generating assets do not have to pay taxes on them in certain circumstances, the report said. The limit for individuals is $14,000 for 2013, or $28,000 for married couples filing jointly. This may, however, affect the tax liability of those receiving the gifts, but those people could also be in brackets with lower taxation rates, meaning that they'll still see significant benefit.

Some other, less-known tips
Further, the American Opportunity Tax Credit and Lifetime Learning Credit are still available to many consumers are going to school at least half-time, and who keep track of and claim the tuition payments they made over the course of the year, the report said. In some cases, Americans might even be able to write off the interest they pay into their previous student loans.

One thing that many people who have looked for a job during the course of the year might not realize is that they can write off some of the expenses they incurred while doing so, the report said. That includes fees for preparing resumes, travel costs and more.

Of course, because finding out whether a person is eligible for any deduction can be tricky, it's often wise to talk to an experienced tax professional about what can and cannot be claimed based on what happened over the course of the previous year. Doing so may reveal allowances for which taxpayers did not know they were eligible, or let them know that those they were planning on will not be available to them.

For a more in-depth look at Liberty Tax Service, visit the Give Me Liberty! Magazine. Follow Liberty Tax on Facebook and on Twitter or contact Liberty Tax directly at 1-877-at-Liberty.

Posted to:
blog comments powered by Disqus